1. Retail Market Subcommittee Update to TAC Kathy Scott February 27, 2014 1

2. 2014 WG Leadership Confirmed by RMS Advanced Metering Working Group ◦ Esther Kent Co- Chair - CenterPoint Energy ◦ John Schatz Co-Chair - TXU Energy Texas SET Working Group ◦ Diana Rehfeldt Chair - TNMP ◦ Kyle Patrick Vice Chair - Reliant/NRG Texas Data Transport Working Group ◦ Isabelle Durham Chair - CenterPoint Energy ◦ Gricelda Calzada Vice Chair - AEP Services ◦ Monica Jones Vice Chair - Reliant/NRG February 27, 2014RMS Update to TAC2

3. 2014 TF Leadership Confirmed by RMS MarkeTrak Taskforce ◦ Monica Jones Co-Chair - Reliant NRG ◦ Carolyn Reed Co-Chair - CenterPoint Energy ◦ Sheri Wiegand Co Chair - TXU Energy Sharyland Transition Taskforce ◦ BJ Flowers Co-Chair - Sharyland Utilities ◦ John Schatz Co-Chair - TXU Energy ◦ Kathy Scott Co-Chair - CenterPoint Energy February 27, 2014RMS Update to TAC3

4. NPRR Status Report NPRR583, Validates CSA Bypass Code in a Move- Out Request is From Current CSA CR (Vote) ◦ This NPRR requires ERCOT to validate that the CR submitting an 814_24, Move-Out Request containing the Continuous Service Agreement (CSA) bypass code, is also the current CSA CR. ◦ 12/18/13 and 12/19 NPRR583 endorsed by RMS and PRS approved 01/10/14 – NPRR583 RMS Impact Analysis : Between $80k-$90k  NPRR583 was unanimously endorsed by RMS with a Priority of 2014 and Rank of 1080. ◦ 01/16/14 – PRS agreed to Table NPRR583 to allow feedback from ERCOT on occurrences and whether the incorrect use of the CSA bypass code violates PUCT Rules or the ERCOT Protocols. ◦ 02/1714 – TX SET Consensus- Withdraw NPRR583 and draft new RMGRR that creates REP Rule 13 denoting that only CSA CRs can send the CSA By-Pass code in the MVO (814_24). This new RMGRR shouldn’t require system changes or cost by ERCOT once approved. February 27, 2014RMS Update to TAC4

5. SCR Status Report SCR776, Retail Data Transport Upgrade to NAESB EDM v2.2 (Vote)  This SCR upgrades North American Energy Standards Board (NAESB) Electronic Delivery Mechanism (EDM) from v1.6 to v2.2, providing ERCOT and Market Participants the ability to support NAESB EDM specified digital signature as well as retail file data identification in compliance with NAESB EDM v2.2.  Strengthens data security and increases efficiency in identifying data for retail file transmissions, such as: ◦ 01/10/14 – SCR776 Impact Analysis Review/Vote:  Between $400k and $500k  RMS Unanimously endorsed that PRS “TABLE” SCR776 to allow time for RMS to discuss project’s benefits and implementation options that may reduce cost ◦ 02/05/14 –ERCOT’s update to TDTWG reported a reduction of 100K now $300-$400k, however, TDTWG continues to discuss SCR776 to determine if additional cost savings can be realized. February 27, 2014RMS Update to TAC5

6. Working Group Update TX SET Working Group: ◦ Mass Transition Max. Daily Volume Update :  Based upon system designs and the potential for additional routine daily transactional volumes requiring the same level of attention such as MVIs, MVOs and Switch transactions, the max. daily volume consensus of ERCOT along with AEP, CNP, Nueces, Oncor, Sharyland and TNMP is a maximum of 100,000 unique ESI IDs per day could be transmitted and processed for a Mass Transition or Acquisition Transfer event :  Note: TDSPs stated that their systems haven’t been stressed tested to handle either 75,000 or 100,000 unique ESI IDs per day, but didn’t anticipate any issues with their understanding that ERCOT would initiate switch transactions for100,000 unique ESI IDs per day across all the TDSPs involved in the Mass Transition or Acquisition Transfer event and not 100,000 ESI IDs per each TDSP. February 27, 2014RMS Update to TAC6

7. Working Group Update ◦ Mass Transition, can event timeline be controlled? :  For large volumes can Mass Transition transactions be triggered prior to normal AM weekday business hours or triggered on a weekend/holiday date if timeline supports POLR rule and allows for expediting the transition of all ESI IDs involved?  ERCOT has no issues triggering the 100,000 unique ESI ID Switch transactions prior to AM week day business hours or on a weekend when and where possible.  If the transactions are split into daily volume of 100k unique ESI IDs per day, the processing time needed by ERCOT will also increase as the number of days increment.  ESI IDs are evaluated daily by ERCOT prior to triggering:  1 st Day Transactions are Initiated— 100k ESI IDs evaluated and processed  2 nd Day Transactions are Initiated —200k ESI IDs evaluated and processed  3 rd Day Transactions are Initiated —300k ESI IDs evaluated and processed  Note that each day after the 3 rd day, some percentage of ESI IDs from previous days have completed and no longer included in the evaluation process. February 27, 2014RMS Update to TAC7

8. February 27, 2014RMS Update to TAC8 RETAIL MARKET GUIDE (RMG) APPENDIX F2 Timeline for Initiation of a Mass Transition on a Business Day not Prior to a Weekend or ERCOT Holiday Reference: Section 7.11.1.1.1, Mass Transition Initiation on a Business Day not Prior to a Weekend or ERCOT Holiday CR = Competitive Retailer TDSP = Transmission and/or Distribution Service Provider POLR = Provider of Last Resort ESI ID = Electric Service Identifier Day -10 Default confirmed and Notification e-mail sent by ERCOT Daily Market Status Call 867_02, Historical Usage 814_04s, Enrollment Notification Responses, from TDSP to ERCOT 814_14s, Drop Enrollment Requests, from ERCOT to POLR CRs Customer billing information sent by ERCOT CBCI file sent by ERCOT 1 Transition Date Daily market status call TDSP performs meter reads or estimates for self- selected switch 24 Daily Market Status Call TDSP sends to ERCOT – final 867_03, Monthly or Final Usage, will include out-of-cycle meter read charge 867_04, Initial Meter Read, ERCOT sends to POLR CRs MondayTuesdayWednesdayThursdayMondayFriday 3 Initial Market Call Mass Transition process: ESI ID allocation 814_03, Enrollment Notification Request, flow requesting second calendar day ESI ID lists for POLRs/TDSPs generated Customer transition should be completed in no more than five calendar days.

9. February 27, 2014RMS Update to TAC9 RETAIL MARKET GUIDE (RMG) APPENDIX F3 Timeline for Initiation of a Mass Transition on a Day Before a Weekend or an ERCOT Holiday Reference: Section 7.11.1.1.2, Mass Transition Initiation on a Business Day Prior to a Weekend or ERCOT Holiday CR = Competitive Retailer ESI ID = Electric Service Identifier POLR = Provider of Last Resort TDSP = Transmission and/or Distribution Service Provider Default confirmed; Notification email sent by ERCOT Initial market call (1800 CPT) Transition Date Daily Market Status Call 867_02, Historical Usage 814_04s, Enrollment Notification Responses, from TDSP to ERCOT 814_14s, Drop Enrollment Requests, from ERCOT to POLR CRs TDSP performs meter reads or estimates for out-of-cycle switch Customer billing information sent by ERCOT Daily market status call TDSP sends to ERCOT - final 867_03, Monthly or Final Usage, will include out-of-cycle meter read charge 867_04, Initial Meter Read ERCOT sends to POLR CRs Mass Transition Process: ESI ID Allocation 814_03, Enrollment Notification Request, flow requesting second day ESI ID lists for POLRs/TDSPs generated Day -10124 MondayTuesday Wednesday SundayFriday 3 Saturday Customer transition should be completed in no more than five calendar days.

10. TDSP’s AMS Install Status Report: AEP – 98.5% complete: ◦ 1,010,158 as of 01.31.2014 TNMP – 57% complete: ◦ 129,988 as of 01.31.2014 Oncor – 100% complete: ◦ 3,262,864 as of 12.31.2012 CNP – 100% complete: ◦ 2,283,012 as of 7.31.2012 Total Number of AMS Meters Installed: 6,686,022 February 27, 2014RMS Update to TAC10

11. Additional Updates: RMS 2014 Goals ◦ RMS Leadership along with Working Group/Taskforce leaderships will start drafting our 2014 Goals on 3/3/14. PUCT Staff Training: ◦ RMS Leadership will be reaching out to PUCT Staff and offering a Retail Market 101 Training for PUCT Staff and other MPs that may be interested. ◦ RMS Leadership will solicit RMS for their participation and requesting RMS input on agenda topics and training material over the next couple of months. Planning will begin in March 2014. Save the Date: ◦ CenterPoint Energy’s CR Workshop for 2014 planned for Wednesday, April 30 th in Houston. February 27, 2014RMS Update to TAC11

12. Questions? 12February 27, 2014RMS Update to TAC